Home / Knowledge / News / Textiles / Cavalier Corporation to shut down NEC Spinning Plant
Cavalier Corporation to shut down NEC Spinning Plant
28
Jun '12
Cavalier Corporation has advised staff at the yarn spinning plant of its subsidiary company Norman Ellison Carpets (NEC) that the plant is closing down on 26 July.  Staff affected by the closure were given the news at site meetings this morning. 

This decision was not taken lightly and came after a very thorough review process involving all of the Group's three woollen yarn spinning plants.

In April, Cavalier Corporation signalled that its earnings for the current financial year would be affected by one-off restructuring costs as it repositioned the broadloom carpet business to cope with the difficult operating environment. While the Company indicated at the time that the impact of the restructuring was difficult to project because of uncertainties as to timing, it still believes that if the estimated cost of all contemplated initiatives was taken into the current year, it would have the effect of reducing underlying earnings of between $3-5 million after tax to a loss of $1-3 million after tax.

The closure of the NEC spinning plant will result in a significant reduction in operating costs for the broadloom carpet business and is an integral part of the comprehensive business improvement program aimed at delivering $10-12 million profit after tax in the 2012-13 year.

Eight staff from the yarn spinning plant will transfer into NEC's tufting plant and it is hoped that at least a dozen of the NEC spinning staff will relocate to other plants within the Group, limiting redundancies to around 70 staff.  Some staff will be retained to de-commission and reinstall some of the existing NEC equipment at the Group's other plants.  All staff will be given every assistance to find other employment including job support outplacement and retraining allowances.

Staff have been advised of their redundancy entitlements and the plant will stop making yarn before the end of July.

The Board stressed that the NEC carpet business and the Norman Ellison Carpets brand itself would not be affected by the move.

This decision is about reducing over-capacity in the yarn spinning operations that support the Group's broadloom carpet manufacturing operations.  NEC will continue to make carpet at its Onehunga tufting plant, supported by very capable manufacturing and sales teams.

Cavalier Corporation

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search